You like that title, huh? Well, its true... we became our own worst enemy!
I am not talking about the mortgage meltdown.. that was more a combination of greedy execs, Wallstreet investors, a soaring and inflated housing market and a government that continues to ignore growing problems until everything falls apart.
No, I am talking about the dreaded "rate shopper."
You can't blame the potential borrower. They are simply playing the game that the mortgage industry created. They go from lender to lender asking for their "best rate" as if it is some hidden national treasure they must uncover. Items such as professionalism, service, knowledge, follow through... these don't matter any more. Why? We told the public they didn't matter!
Think about it like this. Imagine if you will an ad on the tv from the local doctor... "One 5 Minute Phone Call is All it Takes to Diagnose your Illness! Call now!" Would you consider this a professional doctor? What if 90% of the doctors advertised this way? What would the common message be? Maybe something like "This is so simple, a monkey could do it in just 5 minutes!"
My fellow mortgage professionals, I emplore you... STOP with these ads that make us come off as insignificant! Ask the borrower that fell for the "5 minute approval" and found that the lowest rate costs him more than he bargined for... that borrower wishes at the end that they had a real professional. Yet, by the time they realize they need a real professional it is usually too late to help. Kinda like calling a doctor in to look at the sneezing after it develops to full blown pneumonia!
To the potential borrowers out there... never in history have you needed a mortgage PROFESSIONAL than today! 30 years ago, when loan officers were respected, there were 3 basic mortgage loans. Today, there are too many options to count, and with Congress acting at last minute with "sweeping changes", the entire mortgage industry is becoming a maze. Even HUD is confused with the new FHA guidelines... they didn't write them, so now they are trying to figure them out!
Now, more than ever, you need a mortgage professional to help you. Don't play the "rate shopping" game. The lowest rate isn't the best deal. The best program, terms and service will ensure you come out on top every time, even if the rate is 1/8th of a point higher!
Ed Nailor is a mortgage professional in Charlotte, NC, specializing in Charlotte FHA Mortgages, North Carolina USDA Mortgages and special mortgage programs for Teachers, Firefighters and Police.
Call 704-651-8704 for your free mortgage consultation... but please understand, it will take longer than 5 mintues!